New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    ……………… is the way of raising funds by issue

    of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue.
    A Bonus Issue Correct Answer Incorrect Answer
    B Raising money through stock exchange Correct Answer Incorrect Answer
    C Private Placement Correct Answer Incorrect Answer
    D Going to general public and asking for issue through local newspaper Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

         Private Placement is the way of raising funds by issue of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue. The primary market can raise the funds for the first time through IPO (Initial Public Offer) or through Follow-On Public Offer (all the offers subsequent to the initial public offer). A qualified institutional placement is a private placement of equity shares or securities convertible into equity shares by a listed company to Qualified Institutional Buyers only.

    Practice Next

    Relevant for Exams: